Industry

IKEA plans to set up two stores in Chennai

Juvencio Maeztu

Juvencio Maeztu

Swedish home furnishing company IKEA has initiated talks with the Tamil Nadu government to set up two stores in Chennai, which would become operational by 2019-20, according to a top official.

“We will be setting up two stores in Chennai and are scouting for land,” said Juvencio Maeztu, chief executive officer, IKEA India Pvt. Ltd., the Indian arm of the $30 billion Swedish giant. “We need 8-12 acres of land with clear titles and near metro station.”

IKEA would be investing ₹2,000 crore in the two stores and provide employment to 4,000 people.

“This would be the fourth location in the country after Hyderabad, Mumbai and Bengaluru. If all goes well, it would take 12 months for construction and six months for getting various approvals. The new stores, spanning about 4 lakh sq.ft. each, would be ready by 2019-20,” he said.

The new stores, which would be identical to other IKEA stores coming up in the country, would feature a 1,000-seater restaurant, warehouse and play area.

Sourcing textiles

Currently, IKEA has been sourcing textiles from five suppliers in Tiruppur, Tamil Nadu, of which one of the oldest suppliers has been associated with them for 45 years.

The number of suppliers are set to increase and they will get a chance to be a part of IKEA global supply chain, he said.

Claiming it would be a win-win situation for all stakeholders, he said: “It brings the best of the international brands and local partners together. About 30% of items will be sourced from the local market and at the same time, provide employment to local people.” A suppliers fair will be conducted in Chennai to start sourcing items such as sofa, mattress and bookcases.”

Mr. Maeztu said they will forge tie-ups with suppliers, farmers, carpenters and women artisans. “Under the Nextgen (pilot) programme, we are sourcing handmade products from 1,200 women in Varanasi. Similarly, Disha programme will be rolled out in Hyderabad to provide employment to underprivileged women.”

IKEA’s first store in India at Hyderabad would be ready by the first half of 2018. The Mumbai and Bengaluru stores will be ready by the beginning of 2019. “It will take two-three years to start the second store in Mumbai. We will start investing ₹3,000 crore every year. We are in for a long haul and will take a long step,” he said.


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Printable version | May 25, 2022 2:34:23 pm | https://www.thehindu.com/business/Industry/ikea-plans-to-set-up-two-stores-in-chennai/article19685285.ece